The Effect of Corporate Governance, PoliticalConnections and Capital IntensityRatioon TaxAvoidance

ABSTRACT : Tax revenue is an important source of revenue thatwillbeused to finance state expenditures. Forthisreason, the government continues to optimizetax revenue, but untilnow the tax revenue target has notreached the target due to taxavoidance practices by taxpayers. The purpose of thisstudyis toobtainempiricalevidence of the effect of independentcommissioners, audit committees, political connections andthe capital intensity ratio on taxavoidance. The sample in thisstudy uses miningcompanieslisted on the IndonesiaStock Exchangein 2015-2019. Sampledeterminationusingpurposivesampling technique and obtained45 samples.The resultsshowedthatindependentcommissioners, political connections and the capital intensity ratio had apositive effect on taxavoidance. The higher the independentcommissioner, the political connections and thecapital intensity ratio within the company, the higher the level of taxavoidance. This studyalsofoundthat theaudit committeehad no effect on taxavoidance.

Keywords:tax, political connection, capital intensity